By Sam Boughedda
Investing.com -- Chicken Soup for the Soul Entertainment (NASDAQ:CSSE) is buying the assets of 1091 Media, comprising its distribution business known as “1091 Pictures,” the company said Wednesday.
CSSE rose more than 9% following the announcement.
CSSE will pay approximately $15.6 million in cash, Series A perpetual preferred stock and Class A common stock for 1091 Pictures.
CSSE said the deal accelerates its strategy to build the leading independent advertising-based video-on-demand streaming service by approximately doubling the size of its content catalog. The 1091 Pictures library includes about 4,000 movies and TV series. It also has a pipeline of over 350 titles per year.
"This is the next evolution in our content library strategy,” said Elana Sofko, chief strategy officer for Chicken Soup for the Soul Entertainment. “The genre content with loyal fan bases from 1091 Pictures includes music, over a dozen different sports, paranormal, and much more, enabling us to continue to grow both our streaming services and our FAST channels.
CSSE said it expects to recognize more than $10 million of revenue with approximately $3 million of incremental EBITDA in the next 12 months as a result of the transaction.
The transaction is expected to close in early to mid-March 2022.